Articles about economy

I save my pocket money so that I can buy a bigger and shinier shell.

Economy is about money. And most things in life is about money in one way or another. Money can't buy you love or health, but if you have love and health the money can make you (more) independent and free to dedicate yourself to things that give you satisfaction. When it comes to money, it is the big picture that counts (you will get a higher boost by choosing an adequately sized flat than to lower the temperature by three degrees in a too big flat with un-needed rooms, in the same ways that rejecting the car for a bicycle will have give bigger results than go use a fuel-saving driving style) even if all actions count, especially if they are performed over a longer period of time. Supertortuga writes abot topics that can give ideas on how to make smaller or bigger changes in life.

Get financially independent

Published by Supertortuga on 2016-04-03
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Modern society is based on consumption which financed by paid work. In case the consumption can not be financed by saved money, the banks gladly provide credits, which must be returned with interests. Many people search for a way out of this hamster wheel to get financially independent.

But what does actually financially independent mean? Some might think that you are financially independent when you moved away from home and are free to spend your salary as you wish. Others say that you should be free from debt and even have some saved money. Or perhaps that you work for yourself without depending on an employer. All of these definitions refer to different grades of independence, but in this article I will define financial independence by being in a position where work (neither paid work nor other work) is not required for your living, but this is instead financed by passive income from capital (such as dividends or interest income) or properties (such as income from rent).

Dividend carpet bombing

Published by Supertortuga on 2016-03-06
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This concept has nothing to do with warfare, with the possible exception of financial warfare. To lay a carpet where the bombs are dividends refers to having a stock portfolio with stocks that pay dividends distribibuted throoughout the year, preferably with several payments for each kind of stock. One advantage of this strategy is that the income is more evenly distributed over the year, which may be an advantage if the objective is to finance your living from the dividends.

If the desire is to reinvest the dividends, it can also be an advantage to have an even cash-flow, that permits buying stock on several occasions during a year, which tend to give a more representative acquisition cost (if you only buy at one single occasion, there is a risk that you buy too expensive).

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